2021 Car Insurance and Financing

The National Transportation Safety Board (NTSB) has released its preliminary report on the recent fatal crash of a 2019 Tesla Model S in the Houston area. 

On April 17, two men in Texas were killed after a Tesla Model S left the road on a curve and eventually crashed into a tree. The impact damaged the car’s lithium-ion battery, which started a fire. 

Shortly after the crash, police told reporters that they were “100 percent certain that no one was in the driver seat driving that vehicle at the time of impact.” However, the NTSB said in its report that the car’s owner was seated in the driver’s seat and his companion was in the front passenger seat. 

“Footage from the owner’s home security camera shows the owner entering the car’s driver’s seat and the passenger entering the front passenger seat,” the report said. 

The agency said the car traveled "about 550 feet" from the owner’s home before leaving the road at the curb, going over the curve, hitting a drainage culvert, a raised manhole, and then a tree. A fire ensued when the vehicle crashed into the tree. 

The agency also said in the report that Tesla’s Autopilot driver-assist technology couldn’t have been engaged at the time of the crash because it couldn’t be enabled in that location. 

Tesla CEO Elon Musk previously insisted that Autopilot couldn’t have been active at the time of the crash, tweeting out data logs indicating that Autopilot was not enabled and that the car in question didn’t purchase the full self-driving feature. 

Investigation ongoing

The NTSB described the road being traveled prior to the accident as "a concrete two-lane road with one westbound and one eastbound lane and mountable concrete curbs on either side.” The road was level with no line markings, and the speed limit was 30 mph. There was a curve to the south where the Tesla crashed, the agency said. 

Although the infotainment system in the car was destroyed by the fire, the "restraint control module" was recovered (albeit in damaged condition) and handed over to the NTSB to evaluate. The component stores data that includes how fast the car was going, acceleration details, whether seatbelts were in use, and more. 

The NTSB’s investigation is ongoing, and it hasn’t yet decided on the probable cause of the accident. The agency is still looking to glean insights on several issues, including seatbelt use, crash dynamics, and whether the passengers were intoxicated at the time. 

Once a probable cause is determined, the NTSB plans to issue safety recommendations to prevent future crashes.

With the average family of four recently receiving thousands of dollars in government stimulus money, thoughts may turn to a new family car. But which one?

It all depends on your budget, the size of your family, and your automotive preference. Kelley Blue Book (KBB) is out with its annual list of the best new family cars with a wide range of choices.

"When it comes to buying a car for a new or growing family, parents understandably want assurance that their vehicle has outstanding safety and technology features to help protect their precious cargo," said Matt DeLorenzo, senior managing editor for KBB. "We also know budget factors are top-of-mind for families, so we place a heavy emphasis on overall value including purchase and ownership costs.

KBB’s rankings by category

Below are KBB’s rankings for what it considers to be the best vehicles by category. Be sure to click the links to access thousands of verified vehicle reviews by ConsumerAffairs readers.

Best two-row SUVs

2021 Honda CRV

2021 Hyundai Santa Fe

2021 Toyota RAV4

Best three-row SUVs

2021 Honda Pilot

2021 Hyundai Palisade

2021 Kia Telluride

2021 Toyota Highlander

Best full-size SUVs

2021 Chevrolet Tahoe

2021 Ford Expedition

Best minivans

2021 Chrysler Pacifica

2021 Honda Odyssey

2021 Toyota Sienna

Limited inventories create challenges for car buyers

You can check out three of the vehicles on this list with one trip to a Toyota dealer and another three by visiting a Honda dealership. Hyundai placed two models on the list, while Kia, Chevrolet, Ford, and Chrysler had one each.

KBB says its annual list is based on in-depth testing with a focus on safety, overall value, connectivity, technology, and driver-assist features. The team uses proprietary evaluation criteria and data from the National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS) to ensure recommended vehicles have top safety ratings.

Finding a large selection of any of these popular vehicles may pose a challenge since nearly all automakers have faced inventory shortages because of a scarcity of computer chips. When consumers do find the car of their choice, automotive experts say they may have to pay more to drive it off the lot.

“Low inventories have not had a material effect on aggregate sales results,” J.D. Power and LMC Automotive reported in a recent joint April forecast. “Instead, they have enabled manufacturers and retailers to reduce discounts and consumers are demonstrating a willingness not only to buy vehicles closer to MSRP but also to buy more expensive vehicles."

The Insurance Institute for Highway Safety (IIHS) released its list of the safest 2021 vehicles just a day after golf legend Tiger Woods survived a horrific highway crash in his Genesis GV80 SUV.

Hyundai Motor Group, which makes the Genesis -- as well as Hyundai and Kia -- drove off with 12 regular Top Safety Picks and five pluses, the most of any manufacturer. Woods is recuperating in a Los Angeles hospital with serious leg injuries while his SUV is a twisted pile of metal.

IIHS says its annual awards demonstrate that the cars and trucks on American roads are getting safer. This year, 41 vehicles earned Top Safety Pick designations, bringing the total number of 2021 award winners to 90, compared with 64 in February 2020.

“With these awards, we want to make it easy for consumers to find vehicles that provide good protection in crashes, sufficient lighting, and effective front crash protection,” said IIHS President David Harkey. “Manufacturers have stepped up to meet the challenge, and the list of great options has grown to an impressive size this year.”

To receive either award, a vehicle must earn good ratings in all six IIHS crashworthiness tests: driver- and passenger-side small overlap front, moderate overlap front, side, roof strength, and head restraints. 

Vehicles must also be available with front crash prevention that earns a superior or advanced rating in both vehicle-to-vehicle and vehicle-to-pedestrian evaluations. Finally, Top Safety Pick winners must be available with good or acceptable headlights.

Honda makes a strong showing

Besides Hyundai, Honda also made a strong showing. Six Honda models earned a Top Safety Pick rating or better with three -- Accord, Insight, and Odyssey -- achieving the coveted Top Safety Pick+ rating. 

In addition, the 2021 Accord, two Civic models, CR-V, Insight, and Odyssey each achieved a "Good" in all six IIHS crashworthiness tests. 

Two minivans, the Honda Odyssey and Toyota Sienna, qualified this year for the Top Safety Pick+ award. A pickup truck, the Ram 1500 crew cab, is also a Top Safety Pick and is the only winner from Stellantis, the company created by the recent merger of Fiat Chrysler and Peugeot. A year ago, there were no minivans or pickups in the safest categories.

IIHS noted that Mitsubishi failed to earn a single award so far and that General Motors recorded only two.

If you’re in the market for a new or used car and plan on financing it, it may pay to wait a little longer before making a purchase. Already-low auto loan rates are set to go lower.

In its 2021 auto rate forecast, Bankrate.com predicted loan rates would drift lower over time. The Federal Reserve’s interest rate policy is aimed at keeping interest rates stable and low.

“The fed funds rate is pinned to the floor of 0 to 0.25 percent until 2023 or so, but an equal part of the Fed’s strategy is keeping longer-term interest rates low,” said Greg McBride, CFA, Bankrate’s chief financial analyst.

McBride said that while the Fed has primary control over short-term rates, it has a number of tools at its disposal, including purchasing debt, which can help keep nearly all rates to where the Fed wants them to be.

It can help current owners too

RateGenius, a fintech company, says the trend not only helps car buyers but also car owners who refinance their loans. Refinancing is mostly associated with home mortgages, but the company’s analysts say it can also save money on car loans.

"Last year was a difficult one for consumers across the country," says RateGenius CEO Chris Speltz. "While it's not surprising that borrowers who refinanced saved money on their auto loans and lessened their overall debt burden, what our analysis found was that changes in consumer behavior as a result of the pandemic — such as fewer miles driven and choosing to purchase used cars over new — had an overall positive impact on vehicle collateral values, loan approvals, and savings in 2020."

In fact, the company’s report on auto loan refinancing in 2020 found the monthly savings to be the highest on record. The study found:

• Consumers saved an average of $989.72 a year on refinancing their car in 2020, the largest amount since 2016.

• 42 percent of refinanced loans saw annual savings of $1,000 or higher.

• With an average interest rate of 10.5 percent on their existing loans, the average interest on the refinanced loan was 5 percent — the greatest interest rate reduction in eight years.

The trend should continue

For borrowers hoping to refinance their auto loans in 2021, the forecast is promising. Scott Markland, vice president of business development at RateGenius, says 2021 is shaping up to be another year for record savings.

He says the trend is likely to continue throughout the year, providing opportunities for consumers to save money and for lenders to land new business.

ConsumerAffairs has collected hundreds of verified reviews of auto loan companies. You’ll find them here.